MARKETING PLAN

Marketing Plan

Table of Contents

Pricing Strategy3

Penetration Pricing Strategy3

Pricing Tactics4

Differential Pricing4

Legal and Ethical Issues related to the Pricing Tactics4

Marketing Distribution Channel Analysis5

Distribution Strategy6

Advertising Strategy7

Effectiveness of the Advertising7

Promotional Strategies8

Objectives of promotion8

Promotion functions8

Measuring Customer Satisfaction9

Customer Expectations and Experiences10

Pricing Strategy

Penetration Pricing Strategy

Penetration pricing is strategy of prices for new products, but totally opposed to skimming pricing in which firm initially charges the high price. According to past researchers, price is to set a low starting price to get market penetration quickly and efficiently, that is, to quickly attract a large number of consumers and achieve high market share. The high volume of sales reduces production costs, allowing the company to further lower their prices; a classic example of this type of pricing strategy in the case of Dell, which entered the PC market with low prices, and distributes its products through direct channels that reduced level of costs (Boatright, 2007).

Similarly, in the case of Super H20 incorporation, the pricing of the water filter should be based on penetration pricing. The main objective of the penetration pricing strategy is to penetrate the product of Super H20 immediately into the mass market, generating substantial sales volume, achieving a market share goal, to discourage other companies from introducing competing products and attract new customers or additional clients who are price sensitive. This pricing strategy of new product of Super H20 is appropriate under the following conditions;

- The size of the market is large and demand is price elastic

- The costs of manufacturing and distribution can decrease as sales volume increases

- There is fierce competition in the market for that product or are expected to present soon after the introduction of the product.

Pricing Tactics

Differential Pricing

Discounts

Super H20 for its Water filter system should adopt differential pricing in relation to the penetration pricing strategy. Super H20 should offer a special price can be lowered a powerful sales tool. Super H20 can offer a discount to clear stock, a discount for multiple purchases of the same or similar products, or you could offer a discount table to drive large purchases. The company must make sure that these discounts let the company more benefits than lower prices, but be careful. If the discount is too much, customers are asked if cheating were not before and then might be very difficult to return to your previous pricing structure for the discount (Mandy, 2003).

Odd value pricing

Using the tactics of retailers to sell products at $ 9.99 instead of $ 10, Super H20 can be with clients who are very sensitive to price. Some customers perceive these prices as more attractive.

Legal and Ethical Issues related to the Pricing Tactics

Ethics is a key concern for the daily relationships with customers. Ethical marketing decisions nurture trust that holds together buyers and sellers in relation to pricing. Super H20 Inc should adopt a legal and ethical stance and issue policies on legal and ethical pricing tactics. Often, customers do not have enough experience to know what the right decision when faced with an ethical ...